POSSIBLE union between AG Barr and Britvic would create one of Europe’s largest soft drinks firms but could see more than 500 posts shed as the new company seeks to avoid duplication.

THE £1.5billion merger of Irn Bru manufacturers AG Barr and Britvic has raised fears for hundreds of Scots jobs.

If shareholders give the go-ahead, the deal to create one of Europe’s largest soft drinks firms could see more than 500 posts shed as the new company seek to avoid duplication.

Cumbernauld-based soft drinks firm Barr announced yesterday that they had reached an agreement to merge with Britvic.

Barr Britvic Soft Drinks plc will be one of the leading soft drinks firms in Europe, with annual sales of more than £1.5billion.

The
merger will see Britvic shareholders hold approximately 63 per cent of the new company to Barr’s 37 per cent. In a joint statement, the firms said: “The net reduction in combined group headcount is likely to be in the range of eight to 12 per cent.

“The
number of employees and locations affected will depend on the outcome of the integration planning and these changes will only come into effect
as synergies are realised over the three years post-completion.”

The two firms expect the move to be completed by February 2013 and lead to annual savings of £35million. AG Barr also produce juice drink Rubicon and Chelmsford-based Britvic’s portfolio includes soft drinks Tango, 7UP and Pepsi and juice drink J20.